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UPDATE: Netflix keeps services under Netflix site & name drops Qwikster name
News reported by 
(Editor)
September 19, 2011, 20:33
 
UPDATE: Netflix drops the Qwikster name and keeps streaming, movies, and games under the Netflix name and single website. Best idea they've had all year. Thank you @Guillaume for the update: Link.

Old News:
Netflix is separating its Streaming service from its Disc service. Netflix will continue to stream movies while the new spin-off service, Qwikster, will handle DVDs, Blu-Rays, and FINALLY Games for XBOX 360, PS3, and Wii. Games and Blu-Rays will be a premium to the base DVD price. No details, such as time frame for launch or prices have been announced.


Kotaku said:
Big changes are afoot at video streaming and DVD-by-mail service Netflix. It's splitting the business in two, with the Netflix half focusing solely on internet video streaming and a new company, Qwikster, handling the old school shipment of DVDs and Blu-ray discs by mail. It's also about to start renting video games.

Netflix will do so through the Qwikster side of its business, says Netflix CEO and co-founder Reed Hastings in a blog entry, with video game rentals soon to be a part of subscriber's queues.

"One improvement we will make at [Qwikster's] launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games," Hastings writes. "Members have been asking for video games for many years, and now that DVD by mail has its own team, we are finally getting it done."

If you're a Netflix customer who's still holding onto the movies-by-mail option, this may be a great alternative to prominent video game rental service GameFly. But the Netflix-Qwikster split may cause some inconveniences in the form of two queues, two web sites to visit and other little issues.

Hastings explains "...if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn't show up on Netflix, and vice-versa."

In more positive sounding news for international customers hoping to get their Netflix on, Hastings has the following positive spin on the mail-order and internet split.

"Netflix will offer the best streaming service for TV shows and movies, hopefully on a global basis. The additional streaming content we have coming in the next few months is substantial, and we are always working to improve our service further."

Source: Kotaku

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09/19/11, 20:33   Edited:  10/10/11, 21:17
 
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@TriforceBun

I think it had more to do with the loss of over one million customers and sharp stock sell-off than internet comments, but I think it was a bit knee-jerk myself. I mean, Qwikster didn't even get up and running and they shelved it.

Posted by 
 on: 10/10/11, 18:53
Ugh. This whole thing is getting very annoying. I hope this doesn't mean games are out of the picture now... that's the only positive thing I saw during this mess.

Posted by 
 on: 10/10/11, 18:56
@Guillaume

WOW.

@TriforceBun

Yeah, they probably are, but it's probably for the best. The people commented from the internet are probably their most avid users. Those people are important for them in the long term.

Posted by 
 on: 10/10/11, 19:30
I think they made the right move, personally. What was the advantage to splitting the brand in the first place?

Posted by 
 on: 10/10/11, 20:40
@kriswright

The advantage was that they could expand the Netflix streaming service worldwide without having to distribute the discs worldwide. Now, should they still decide to expand worldwide, they have to deal with not being able to provide the disc service to international customers, even though US customers get DVD's in addition to the streaming service under the same subscription.

Posted by 
 on: 10/10/11, 20:53
@casper884

I guess. Don't they already offer different services based on region, anyway (in Canada and such)? So why would they need a new brand to do that worldwide? It seems to me that dropping the mail order service for international customers has to be easier than converting millions of your current customers to a totally rebranded new version of the same service.

Posted by 
 on: 10/10/11, 21:14
This means that Michael Pachter fails yet again. Why do people keep listening to this guy? So many unemployed people in the world and this guy gets paid to make stuff up that never comes to fruition.

Posted by 
 on: 10/10/11, 21:56
@kriswright

Which is probably why they went against it in the end. Who knows? Maybe this wasn't a knee-jerk reaction, and the brand switch was just them fielding their ideas to the public to see how it panned out. I think they had a contingency plan all along.

Posted by 
 on: 10/10/11, 23:46   Edited:  10/10/11, 23:46
I think this is a good idea.

Posted by 
 on: 10/11/11, 03:25
Netflix. Another "once good" service that I expect to go the way of the dodo within the next 2 years. If they thought that they would get away with all of the sudden doubling their prices, they have another thing coming to them. Something that has to do with red and something that rimes with Honolulu.

Posted by 
 on: 10/11/11, 17:39   Edited:  10/11/11, 17:52
Not splitting up the service (especially with a new unknown name) is the smartest thing since the New Coke brand was torpedoed.

Posted by 
 on: 10/11/11, 20:01
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